Double-Digit Growth For Air Canada Next Year

Air Canada expects 2014 capacity to grow about 10% next year, a significant increase on the 2-2.5% rise in available seat-miles the carrier is forecasting for this year.

The 2014 increase in supply is the result of a fleet plan that adds six Boeing787s, the planned growth of low-cost subsidiary Rouge and the final deliveries of high-density Boeing 777-300ERs, Air Canada said Nov. 8 during its third-quarter results earnings call.

That third-quarter performance saw Air Canada’s net income decline 16.7% to C$299 million ($285 million), due mostly to a near-doubling of non-operating expenses to C$125 million, although a 6% rise in operating costs to C$3.1 billion also contributed to this result. Revenues, meanwhile, rose 5% to C$3.5 billion.

Air Canada, however, noted that net income adjusted to ignore foreign exchange fluctuations, mark-to-market accounting and unusual items was a record C$365 million, some 60% more than the adjusted net profit posted in 2012’s third quarter.